A new report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reveals that Australia’s agriculture exports have stayed strong during COVID-19 despite disruptions to supply chains and logistics.
Head of Forecasting and Trade at ABARES, Jared Greenville said the Report, Analysis of Australian agricultural trade and the COVID-19 pandemic, found that the Government and industry’s “nimble response” to rapidly changing market conditions had been critical to ensuring the strength of Australia’s trade profile.
“This positioned Australia well to take advantage of opportunities during the global economic post-pandemic recovery,” Dr Greenville said.
“Supply chain and logistics disruptions observed in the early stages of the pandemic are benefiting from Government and industry responses,” he said.
“And despite the risks, overall export performance has remained strong.”
Dr Greenville said that while the pandemic precipitated a global economic downturn, it was unlikely to have a significant impact on demand for essential food products.
“This persistence of demand was seen during the Global Financial Crisis when agricultural trade remained steady,” he said.
“But not all products from the agriculture, forestry and fisheries sectors are essential items.”
He said products consumed through more discretionary spending had been more significantly affected.
Dr Greenville said the pandemic was also driving some changes that would likely remain part of the future trade landscape.
“These include shifts in consumers buying more online, higher demand for stable and safe food, a greater awareness of supply chain risks, increased use of digital trade systems and the risk of creeping protectionism,” he said.
ABARE’s 10-page report can be accessed at this PS News link.
